What do you do when faced with small print terms? Do you read them? Or do you just sign the contract / click “Accept”? You’re not alone – nobody reads the smallprint. That’s certainly borne out by survey after survey. A 2017 survey by Deloitte showed that 91% of people accept terms without reading them. This jumps to 97% for ages 18-34. 

This is hardly a scientific survey. It was only 2,000 consumers. But I’ve written about this before. For example, when I reported that Ofcom said: “Many adults would struggle to understand video-sharing platforms’ rules – kids have even less chance”. At one point, users granted Gamestation “a non-transferable option to claim, for now and for ever more, your immortal soul.” More recently, Tax Policy Associates included in their website terms a “bottle of good wine to the first person to read this”. It was three months before anyone noticed it and claimed the wine.

Consumer…

Of course, if you’re a consumer, it’s ok not to read the terms. Even if you did read them, you wouldn’t have the bargaining clout to get the seller to change the terms anyway. You’re just one customer of many. That’s why we have consumer laws: to protect those without bargaining power.

…vs business

It’s different if you’re a business; you have less protection. The Unfair Contract Terms Act protects against standard, non-negotiable, unreasonable terms. But this legislation was passed nearly 50 years ago. These days, courts are more likely to take a softer line because businesses have more choice and expert advice from their lawyer. Having said that, there has been a huge increase in the use of cloud and AI services, all of which are on standard terms. These terms are all similar to each other too, with many of them based under US law where it is easier to exclude liability. So, shopping around might not help you. But expectations have changed now of standard services.

Moral of the story?

The moral of the story is to read the terms of course! Even if the terms are not negotiable, it’s worth knowing what the risks are and comparing them against other offerings in the market.

Or get your contract lawyer to read them. I offer a fixed fee service for reviewing terms in two tiers: lower-value and higher-value contracts. Contact me if you want my flyer outlining this fixed-price service.

If you need advice, contact me at +44 20 3824 9748 or fjennings@hcrlaw.com.